You Can Buy Your First Home – What To Do When The Down Payment Is A Challenge

The biggest challenge we hear in the Real Estate industry is the down payment. With prices rising almost beyond reason, first time home buyers can have a tough time trying to save the required down payment.

Over the years, options have changed. Some for the better, some not. When it comes to a down payment, sometimes you just have to get creative. You have to really think outside the box. Here are a few ideas that may help you think outside that box enough so you can buy your first home!

Let’s Jump Outside The Box!

• Do you have RRSPs? You can borrow an extra $10 000 out of Rrsp’s up to $35 000 total. This helps some buyers that have this option to offset the Down Payment requirement. “You can withdraw funds from more than one RRSP as long as you are the owner of each RRSP account. Your RRSP issuer will not withhold tax on withdrawn amounts of $35,000 or less. Some RRSPs, such as locked-in or group RRSPs, do not allow you to withdraw funds from them.” Quoted from the Government of Canada website here
• Have you considered co-ownership? This can work out well if you are single and have someone that you could pair up with. The shared benefits can help you both in the long term.
• Although CMHC eliminated the Second Home Program recently (it used to be that a parent could buy a child a home), there’s another angle to think about if you are a college or university student. A property purchased for a family member attending college or university away from home, if insured, allows you to put as little as 5% down. 
• The purchase of a duplex with the option to rent the other half can be a great move to make as well. A percentage of the income from one of the units will be added to how much you can qualify for.

When You Have Goals, Create A Plan To Make Them Happen

If your greatest desire is to own your own home, you can do it! There are many ways to find the money you need to make it happen.

With determination and a solid plan to achieve your goals, you can purchase your first home and beyond.

Just remember – sometimes you just have to get out of that box and do some creative thinking.

Let’s Talk!

I am passionate about helping you own your own home, even if you have borderline credit or need down payment assistance.  Interested in real estate investing?  I have specialized investment programs.  Ask me!

Tom Booth, Broker at StreetCity Realty Inc.

Mobile:  519-330-0714

Email:  [email protected]